What should you Know about Low-interest Business Loan in Singapore

In Singapore, people take up business loans to meet some of their urgent financial needs. There are banks and money lenders from whom you can avail of the loan. Depending on the interest rates charged by both moneylenders and banks, people make their decision. Moneylenders don’t require any collateral security deposit, unlike banks, do. In this article, we shall focus on the Low Interest Business Loans Singapore aspect.

Who exactly needs low-interest business loans?

There are various groups of people who require different types of loans. Low-interest business loans are required by:

  1. Small scale enterprises– Small scale enterprises require low-interest business loans because of their short term financial needs. They require loans to buy some raw materials, for technological up-gradation, for transportation and others. They cannot afford to pay high interest to the banks. They may or may not have collateral security to show it to the banks. Thus, small scale enterprises require low-interest business loans.
  2. Startups– Nowadays, there are a lot of new startups coming up every day. With the uniqueness and specialty they provide in their products, people prefer them over other choices available. Most of the startups face the problem of funding. They don’t have the required capital. This is when they contact for low-interest business loans. Moneylenders readily provide low-interest capital business loans to these startups. If they find that their idea would work in the market then they provide them loans. Startups don’t prefer taking loans from the banks as they also don’t have much credit standing as required by the banks. They also can’t bear the challenge of paying high-interest rates.Capitall Business Loan encourages new startups to come with ideas. They are ready to provide loans to these startups.
  3. Women enterprises– There is no doubt about the fact that women are ruling the world now. With the advancement of women in almost every sector, they are bringing some revolutionary changes in the modern world. However, one of the biggest problems they face is raising the capital business loan amount. Moneylenders in Singapore are ready to provide loans to women enterprises. All they have to do is tell their ideas and plans to the lenders. If lenders find their idea worth investing for, they can readily provide them with the loan amount. Capitall Business Loans aim at empowering the women in society.

What are the requirements to be fulfilled for the low-interest business loan Singapore?

For anyone to avail of low-interest business loans from moneylenders. They require fulfilling certain criteria. Let us have a look at these criteria:

  • You need to be a resident of Singapore if you want to get a business loan. Non-residents can also avail of the business loan but that requires you to fulfill a lot of steps.
  • Moneylenders would require you to show your company’s last 3 years’ profit.
  • Your company’s minimum annual revenue should be 450 Singapore dollars.
  • You need to be at the age of 21 years and above.

Advantages of choosing low-interest business loan in Singapore

There are various advantages of choosing a low-interest business loan in Singapore. They are:

  • Time– You get a lot of time to repay the loan amount. Usually, moneylenders provide around 3-5 years for you to repay the loan amount. Most of the enterprises find this time frame to be good enough for them to repay the loan. If enterprises are asked to repay the loan amount in less than a year then they might find it difficult to repay.
  • Interest Rates– One of the biggest advantages is the interest rate charged by the moneylenders for availing low-interest business loans. Different moneylenders charge different interest rates to repay the loan amount. Usually, lenders charge an interest rate of between 6%-14% annually for repaying the loan and on the other hand, banks charges a bit higher interest rates which lie from 12% – 20%. Companies find moneylenders to be much more suitable and reliable to repay the loan amount.
  • Flexibility– If you have been an old customer to the moneylenders and you have been borrowing loans from moneylenders at regular intervals, then the lender will be ready to provide you with some extra duration. At times we fail to repay the loan at the specified time frame. This is when maintaining good relations with the lender becomes important.

Conclusion

Borrowing loans from moneylenders can take some time but it is surely worth waiting for. They are the safest and reliable option for availing loans. Once you fulfill all the criteria, you can easily avail of loans from moneylenders. With the various advantages it provides, lenders make sure that you repay the loan at the specified time frame. Moneylenders in Singapore offers a wide range of facilities apart from providing loans. Availing business loans in Singapore is much easier now since most of the work can be done online.